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Compact defence

Hello all. I am somewhat of a newb, and I am trying to understand what a compact defence is. I did a search, but I got alot of threads talking about them and giving examples with tens of thousands of troops, but not explaining the philosopy of them. I was just wondering if someone could explain the pholosophy to me or point me to a thread that does this, then I could come up with my own CD instead of just copying someone elses, without understanding why they did what they did.